Finance

The U.S. labor market unexpectedly shed 23,000 jobs in July, falling well short of Wall Street estimates that anticipated an increase of roughly 83,000 positions. This cooling economic data prompted market participants to lower expectations for an impending interest rate hike by the Federal Reserve.

Government bond yields moved lower after the soft payroll data dampened the outlook for further central bank monetary tightening. The yield on the benchmark 10-year Treasury note dipped to 4.64%, while the policy-sensitive 2-year yield adjusted lower to settle around 4.20%.

International oil benchmarks rebounded as Brent crude futures settled up 1.3% to $83.55 a barrel. Market anxieties intensified after Iran revealed a restrictive legislative draft aiming to block specific national vessels from crossing the critical Strait of Hormuz shipping lane.